The USD/JPY pair broke down again on Friday, as we continue to see a bit of a “risk off” move in the currency markets. The Japanese yen being bought is interesting to me, because it shows that people are becoming a bit more skittish on the US dollar. Overall, it looks as if the market may go looking towards the 108 handle, where I would expect to see a significant amount of support. If we can break down below there, then the market should go looking towards the 105 level. As far as buying is concerned, I would be very hesitant to do so currently, because even if we get a bounce, it’s going to take a certain amount of stability in the market for traders to feel comfortable to hang on to any type of long position.
Written by FX Empire